Regulation will determine whether AI spreads prosperity or concentrates power: the EU’s comprehensive digital and AI rules give it an institutional edge, while Ukraine’s reliance on older legal structures risks higher market concentration, inequality and slower innovation; policymakers should craft unified, nationally adapted AI regulations drawing on European models.

The present article examines four interrelated elements of the economy: namely, markets, labour, production, and distribution. These elements thus function as principles and laws. This approach is predicated on the premise that laws exert their influence on the economy from within rather than as extrinsic forces. The permitting of data and algorithms, the financial implications of compliance, the risk of legal action, and the equitable distribution of the benefits of digital transformation are all challenging within regulatory frameworks. It is therefore incumbent upon regulatory bodies to ensure that all individuals have access to data, support platform markets, and that artificial intelligence redistributes wealth among the owners of capital, data and labour. An additional chapter is devoted to an examination of the legal systems of Ukraine and the EU. The European Union has established standards for the digital economy and has fully embraced artificial intelligence. The scope of these regulations encompasses platform usage, digital goods liability, data protection (GDPR), and artificial intelligence (AI). However, the majority of the laws adopted in Ukraine are based on extant structures and systems. The cultural and procedural differences between Europe and Ukraine are of particular relevance to business and legal matters. These factors pertain to regulatory stability, the cost of innovation, data accessibility, the balance of market power, and guarantees for consumers and employees. It is recommended that the development of comprehensive rules for the digital economy be pursued, with these rules being adapted to suit the requirements of national institutions and with inspiration being drawn from European models. Moreover, the analysis indicates that the proliferation of digital technologies necessitates a recalibration of the equilibrium between legal certainty and technological innovation. In the absence of explicit legislation pertaining to the utilisation of digital data and artificial intelligence, the economic potential of these technologies may remain unexplored, whilst concomitantly resulting in increased market concentration, inequality, and the risk of personal information being misused. It is imperative that future research endeavours concentrate on conducting empirical assessments of the economic ramifications of artificial intelligence. This is particularly salient in the context of enhancing productivity, restructuring the labour market, and ensuring equitable income distribution. The subject of the present study is the transformation of modern economic systems as a result of digitalisation and the introduction of artificial intelligence, as well as the legal mechanisms that regulate these processes. Methodology. The study was conducted using standard scientific methods. A comparative approach was employed to analyse and synthesise various theoretical perspectives on the study of digitalisation and artificial intelligence within economic systems. In the context of technological transformation, this analysis identified key structural elements of the digital economy, including the market, labour relations, productivity dynamics and income distribution. Through this process of synthesis, a theoretical and legal model of the economic system was developed, combining economic mechanisms with the regulatory parameters that govern the use of digital platforms, algorithms, and data. Using inductive and deductive methods, the main patterns of interaction between legal regulation and technological development were identified. General decisions were also made about how legal frameworks govern the digital economy. Furthermore, a comparative approach was employed to analyse regulatory strategies for the digital economy and artificial intelligence governance in the EU and Ukraine. This allowed the study to highlight significant institutional differences between these legal systems and evaluate their potential influence on economic growth and innovation. This article aims to examine the impact of digitalisation and artificial intelligence on changes to the economic system, and to develop a theoretical and legal model that explains the interaction between technological development, economic processes, and regulatory frameworks. The study seeks to understand the influence of laws governing the use of data, algorithms, digital platforms and artificial intelligence on labour relations, productivity dynamics, income distribution and market functioning. It also examines regulatory approaches to the digital economy and artificial intelligence in the European Union and Ukraine, identifying institutional differences and assessing their impact on innovation and economic development. The results of the study show that the rise of digital technologies and artificial intelligence will dramatically improve the way existing economic systems function. Digitalisation is making data and algorithmic systems increasingly important economic resources, thereby changing the way markets operate, how labour is organised, how productivity is measured and how income is distributed. Conclusion. A study of the transformation of economic systems in the context of digitalisation and artificial intelligence has revealed that technological innovations, monetary policy and legislative measures are having an increasingly significant impact on the performance of modern economies. The proposed theoretical and legal model considers law to be an integral part of the economic system that influences income distribution, labour relations, market structure and productivity dynamics. This distinguishes it from traditional approaches. It can explain how data, artificial intelligence, digital platforms and competition laws shape the institutional conditions for developing the digital economy. A comparison of the Ukrainian and EU legal and regulatory frameworks revealed significant differences in their respective regulatory and institutional development patterns. The European Union has already established a comprehensive legal and regulatory framework for the digital economy and artificial intelligence. This includes special legislation governing data management, the platform economy, labour conditions and product liability in the digital environment. The existing Ukrainian legislation on personal data protection, electronic communications, competition policy, cybersecurity and digital sector incentives essentially forms the legal basis for the developing digital economy. However, there are some institutional gaps in the governance of digital technologies due to the absence of a unified regulatory system designed specifically for artificial intelligence. This study's practical significance lies in broadening the theoretical basis of the digital economy and artificial intelligence from economic and legal standpoints. The results of this comparative analysis and the proposed conceptual model could inform the development of more effective regulatory policies to ensure balanced interaction between technological innovation, economic growth and the protection of socioeconomic rights in the context of rapid digital transformation.